Wabash (NYSE: WNC), the innovation leader of connected solutions
for the transportation, logistics and distribution industries,
today reported results for the quarter ended September 30,
2023.
The Company's net sales for the third quarter of
2023 reached $632.8 million, reflecting a 3.4% decrease compared to
the same quarter of the previous year. The Company achieved
consolidated gross profit of $123 million, equivalent to 19.4%
of sales. Operating income amounted to $77.6 million, representing
12.3% of sales for the quarter. These results exceeded prior
expectations, primarily due to the Company's strong material
margin, favorable product mix, and strong results from parts and
services, tanks, and truck bodies. Third quarter diluted earnings
per share was $1.16, surpassing the Company's previous quarterly
outlook range.
As of September 30, 2023, total Company
backlog stood at approximately $1.9 billion, a decrease of 20%
compared to the third quarter of 2022 as the timing of order
activity is likely to come toward the later end of typical seasonal
patterns for the industry. Backlog expected to be shipped within
the following 12-months amounted to approximately $1.4 billion as
of September 30, 2023.
"At Wabash, we believe in the power of strong
connections," said Brent Yeagy, president and chief executive
officer. "We've successfully created value by redefining our
relationships with customers and suppliers, and now, we're ready to
take it to the next level. With digital transformation as our
compass, we are poised to extend our reach even further within the
dynamic segments of transportation, logistics, and distribution as
we set the groundwork to deliver an innovative digital marketplace
that will endeavor to enhance efficiency for our customers by
pulling on the full breadth of our partner ecosystem."
For the full-year ending December 31, 2023, the
Company narrowed its revenue outlook to approximately $2.6 billion
and increased its EPS guidance to a range of $4.60 to $4.70 with a
midpoint of $4.65.
“Through the first three quarters of 2023 we
have achieved cumulative diluted EPS of $3.74, surpassing the full
year EPS target of $3.50 by 2025 that we presented at our 2022
Investor Meeting," explained Yeagy. "We are raising the bar
considerably for the peak earnings potential of Wabash. We are also
poised to generate significant free cash flow in 2023 even while
making meaningful investments in our operations. As we navigate
softer near-term demand conditions within the dry van market, we
expect the strength of our first to final mile portfolio to be
apparent as truck bodies, tank trailers and parts & services
support our results leading to what we anticipate will be our
best-ever trough performance in 2024."
Business Segment Highlights
The table below is a summary of select segment
operating and financial results prior to the elimination of
intersegment sales for the third quarter of 2023 and 2022. A
complete disclosure of the results by individual segment is
included in the tables following this release.
|
|
Wabash National Corporation |
|
|
|
|
Three Months Ended September 30, |
|
2023 |
|
2022 |
|
|
|
|
New Units Shipped |
|
|
|
|
|
|
|
|
Trailers |
|
|
10,765 |
|
|
|
13,365 |
|
|
|
|
|
Truck bodies |
|
|
4,160 |
|
|
|
4,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation Solutions |
|
Parts & Services |
Three Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Unaudited, dollars in thousands) |
Net sales |
|
$ |
582,870 |
|
|
$ |
611,779 |
|
|
$ |
56,441 |
|
|
$ |
46,728 |
|
Gross profit |
|
$ |
107,549 |
|
|
$ |
80,779 |
|
|
$ |
15,361 |
|
|
$ |
11,226 |
|
Gross profit margin |
|
|
18.5 |
% |
|
|
13.2 |
% |
|
|
27.2 |
% |
|
|
24.0 |
% |
Income from operations |
|
$ |
89,413 |
|
|
$ |
63,274 |
|
|
$ |
12,358 |
|
|
$ |
7,732 |
|
Income from operations
margin |
|
|
15.3 |
% |
|
|
10.3 |
% |
|
|
21.9 |
% |
|
|
16.5 |
% |
During the third quarter, Transportation
Solutions achieved net sales of $582.9 million, a decrease of 4.7%
compared to the same quarter of the previous year. Operating income
for the quarter amounted to $89.4 million, representing 15.3% of
sales.
Parts & Services' net sales for the third
quarter reached $56.4 million, an increase of 20.8% compared to the
prior year quarter as the segment continued to make notable strides
along its path of strategic growth. Operating income for the
quarter amounted to $12.4 million, or 21.9% of sales.
Non-GAAP Measures
In addition to disclosing financial results
calculated in accordance with United States generally accepted
accounting principles (GAAP), the financial information included in
this release contains non-GAAP financial measures, including
operating EBITDA, free cash flow, adjusted operating income and
margin, adjusted net income attributable to common stockholders,
adjusted diluted earnings per share, adjusted segment EBITDA, and
adjusted segment EBITDA margin. These non-GAAP measures should not
be considered a substitute for, or superior to, financial measures
and results calculated in accordance with GAAP, including net
income, and reconciliations to GAAP financial statements should be
carefully evaluated.
Operating EBITDA includes noncontrolling
interest and is defined as earnings before interest, taxes,
depreciation, amortization, stock-based compensation, impairment
and other, net, and other non-operating income and expense
(including any loss on debt extinguishment charges). Management
believes providing operating EBITDA is useful for investors to
understand the Company’s performance and results of operations
period to period with the exclusion of the items identified above.
Management believes the presentation of operating EBITDA, when
combined with the GAAP presentations of operating income and net
income, is beneficial to an investor’s understanding of the
Company’s operating performance. A reconciliation of operating
EBITDA to net income, the most comparable GAAP financial measure,
is included in the tables following this release.
Free cash flow is defined as net cash provided
by (used in) operating activities minus cash payments for capital
expenditures minus expenditures for revenue generating assets.
Management believes providing free cash flow is useful for
investors to understand the Company’s performance and results of
cash generation period to period with the exclusion of the item
identified above. Management believes the presentation of free cash
flow, when combined with the GAAP presentations of cash provided by
operating activities, is beneficial to an investor’s understanding
of the Company’s operating performance. A reconciliation of free
cash flow to cash used in operating activities, the most comparable
GAAP financial measure, is included in the tables following this
release.
Adjusted operating income and margin, non-GAAP
financial measures, exclude certain costs, expenses, other charges,
gains or income that are included in the determination of operating
income under U.S. GAAP, but that management would not consider
important in evaluating the quality of the Company’s operating
results as they are not indicative of the Company’s core operating
results or may obscure trends useful in evaluating the Company’s
continuing activities. Accordingly, the Company presents adjusted
operating income and margin excluding these special items to help
investors evaluate our operating performance and trends in our
business consistent with how management evaluates such performance
and trends. Further, the Company presents adjusted operating income
and margin to provide investors with a better understanding of the
Company’s view of our results as compared to prior periods.
Adjusted operating income margin is calculated by dividing adjusted
operating income by total net sales. A reconciliation of adjusted
operating income to operating income, the most comparable GAAP
financial measure, is included in the tables following this
release.
Adjusted net income attributable to common
stockholders and adjusted diluted earnings per share reflect no
adjustments for any period presented. Management believes providing
adjusted measures and excluding certain items facilitates
comparisons to the Company’s prior year periods and, when combined
with the GAAP presentation of net income and diluted net income per
share, is beneficial to an investor’s understanding of the
Company’s performance. A reconciliation of adjusted net income
attributable to common stockholders and adjusted diluted earnings
per share to net income attributable to common stockholders and
diluted earnings per share, the most comparable GAAP financial
measures, are included in the tables following this release.
Adjusted segment EBITDA, a non-GAAP financial
measure, includes noncontrolling interest and is calculated by
adding back segment depreciation and amortization expense to
segment operating income, and excludes certain costs, expenses,
other charges, gains or income that are included in the
determination of operating income under GAAP, but that management
would not consider important in evaluating the quality of the
Company’s segment operating results as they are not indicative of
each segment's core operating results or may obscure trends useful
in evaluating the segment's continuing activities. Adjusted segment
EBITDA Margin is calculated by dividing Adjusted segment EBITDA by
segment total net sales. A reconciliation of adjusted segment
EBITDA to income from operations, the most comparable GAAP
financial measure, is included in the tables following this
release.
Information reconciling any forward-looking
Operating EBITDA, Operating EBITDA Margin, Adjusted Operating
Income, Adjusted Operating Income Margin, Free Cash Flow, Adjusted
EBITDA Margin, and Adjusted EPS to GAAP financial measures is
unavailable to us without unreasonable effort. We cannot provide
reconciliations of the above noted forward looking non-GAAP
measures to GAAP financial measures because certain items required
for such reconciliations are outside of our control and/or cannot
be reasonably predicted. Preparation of such reconciliations would
require a forward-looking balance sheet, statement of income and
statement of cash flows, prepared in accordance with GAAP, and such
forward-looking financial statements are unavailable to us without
unreasonable effort.
Third Quarter
2023 Conference Call
Wabash will discuss its results during its
quarterly investor conference call on Wednesday, October 25,
2023, beginning at 12:00 p.m. EDT. The call and an
accompanying slide presentation will be accessible on the
"Investors" section of the Company’s website at www.onewabash.com.
The conference call will also be accessible by dialing (888)
440-6928, conference ID 6579482. A replay of the call will be
available on the site shortly after the conclusion of the
presentation.
About
Wabash (NYSE: WNC) is the visionary leader of
connected solutions for the transportation, logistics and
distribution industries that is Changing How the World Reaches
You®. Headquartered in Lafayette, Indiana, the company enables
customers to thrive by providing insight into tomorrow and
delivering pragmatic solutions today to move everything from first
to final mile. Wabash designs, manufactures, and services a diverse
range of products, including: dry freight and refrigerated
trailers, flatbed trailers, tank trailers, dry and refrigerated
truck bodies, structural composite panels and products, trailer
aerodynamic solutions, and specialty food grade processing
equipment. Learn more at www.onewabash.com.
Safe Harbor Statement
This press release contains certain
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements convey
the Company’s current expectations or forecasts of future events.
All statements contained in this press release other than
statements of historical fact are forward-looking statements. These
forward-looking statements include, among other things, all
statements regarding the Company’s outlook for trailer and truck
body shipments, backlog, expectations regarding demand levels for
trailers, truck bodies, non-trailer equipment and our other
diversified product offerings, pricing, profitability and earnings,
cash flow and liquidity, opportunity to capture higher margin
sales, new product innovations, our growth and diversification
strategies, our expectations for improved financial performance
during the course of the year and our expectations with regards to
capital allocation. These and the Company’s other forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those implied
by the forward-looking statements. Without limitation, these risks
and uncertainties include the highly cyclical nature of our
business, uncertain economic conditions including the possibility
that customer demand may not meet our expectations, our backlog may
not reflect future sales of our products, increased competition,
reliance on certain customers and corporate partnerships, risks of
customer pick-up delays, shortages and costs of raw materials
including the impact of tariffs or other international trade
developments, risks in implementing and sustaining improvements in
the Company’s manufacturing operations and cost containment,
dependence on industry trends and timing, supplier constraints,
labor costs and availability, customer acceptance of and reactions
to pricing changes, costs of indebtedness, and our ability to
execute on our long-term strategic plan. Readers should review and
consider the various disclosures made by the Company in this press
release and in the Company’s reports to its stockholders and
periodic reports on Forms 10-K and 10-Q.
WABASH NATIONAL
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited - dollars in thousands)
|
September 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
105,288 |
|
|
$ |
58,245 |
|
Accounts receivable, net |
|
211,181 |
|
|
|
255,577 |
|
Inventories, net |
|
344,292 |
|
|
|
243,870 |
|
Prepaid expenses and other |
|
60,282 |
|
|
|
34,927 |
|
Total current assets |
|
721,043 |
|
|
|
592,619 |
|
Property, plant, and
equipment, net |
|
319,358 |
|
|
|
271,116 |
|
Goodwill |
|
188,418 |
|
|
|
188,434 |
|
Intangible assets, net |
|
89,621 |
|
|
|
99,231 |
|
Other assets |
|
70,900 |
|
|
|
52,123 |
|
Total assets |
$ |
1,389,340 |
|
|
$ |
1,203,523 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
— |
|
|
$ |
— |
|
Accounts payable |
|
205,299 |
|
|
|
189,141 |
|
Other accrued liabilities |
|
187,918 |
|
|
|
158,327 |
|
Total current liabilities |
|
393,217 |
|
|
|
347,468 |
|
Long-term debt |
|
396,300 |
|
|
|
395,818 |
|
Deferred income taxes |
|
37,107 |
|
|
|
27,758 |
|
Other non-current
liabilities |
|
43,548 |
|
|
|
34,354 |
|
Total liabilities |
|
870,172 |
|
|
|
805,398 |
|
Commitments and
contingencies |
|
|
|
Noncontrolling interest |
|
481 |
|
|
|
512 |
|
Wabash National Corporation
stockholders’ equity: |
|
|
|
Common stock 200,000,000 shares authorized, $0.01 par value,
46,297,254 and 47,675,796 shares outstanding, respectively |
|
774 |
|
|
|
766 |
|
Additional paid-in capital |
|
674,900 |
|
|
|
665,941 |
|
Retained earnings |
|
357,294 |
|
|
|
188,241 |
|
Accumulated other comprehensive loss |
|
(1,929 |
) |
|
|
(882 |
) |
Treasury stock at cost, 31,223,492 and 28,972,928 common shares,
respectively |
|
(512,352 |
) |
|
|
(456,453 |
) |
Total Wabash National Corporation stockholders' equity |
|
518,687 |
|
|
|
397,613 |
|
Total liabilities, noncontrolling interest, and equity |
$ |
1,389,340 |
|
|
$ |
1,203,523 |
|
|
WABASH NATIONAL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited - dollars in thousands, except per
share amounts)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net sales |
$ |
632,828 |
|
|
$ |
655,150 |
|
|
$ |
1,940,400 |
|
|
$ |
1,844,680 |
|
Cost of sales |
|
509,918 |
|
|
|
563,145 |
|
|
|
1,550,436 |
|
|
|
1,616,586 |
|
Gross profit |
|
122,910 |
|
|
|
92,005 |
|
|
|
389,964 |
|
|
|
228,094 |
|
General and administrative
expenses |
|
35,836 |
|
|
|
27,845 |
|
|
|
109,194 |
|
|
|
85,121 |
|
Selling expenses |
|
6,086 |
|
|
|
7,752 |
|
|
|
20,164 |
|
|
|
21,337 |
|
Amortization of intangible
assets |
|
3,204 |
|
|
|
3,184 |
|
|
|
9,610 |
|
|
|
12,026 |
|
Impairment and other, net |
|
147 |
|
|
|
349 |
|
|
|
149 |
|
|
|
692 |
|
Income from operations |
|
77,637 |
|
|
|
52,875 |
|
|
|
250,847 |
|
|
|
108,918 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(4,932 |
) |
|
|
(5,210 |
) |
|
|
(14,913 |
) |
|
|
(15,341 |
) |
Other, net |
|
844 |
|
|
|
(179 |
) |
|
|
1,706 |
|
|
|
(577 |
) |
Other expense, net |
|
(4,088 |
) |
|
|
(5,389 |
) |
|
|
(13,207 |
) |
|
|
(15,918 |
) |
Income before income tax
expense |
|
73,549 |
|
|
|
47,486 |
|
|
|
237,640 |
|
|
|
93,000 |
|
Income tax expense |
|
18,068 |
|
|
|
11,130 |
|
|
|
56,289 |
|
|
|
21,831 |
|
Net income |
|
55,481 |
|
|
|
36,356 |
|
|
|
181,351 |
|
|
|
71,169 |
|
Net income attributable to
noncontrolling interest |
|
152 |
|
|
|
186 |
|
|
|
481 |
|
|
|
373 |
|
Net income attributable to
common stockholders |
$ |
55,329 |
|
|
$ |
36,170 |
|
|
$ |
180,870 |
|
|
$ |
70,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders per share: |
|
|
|
|
|
|
|
Basic |
$ |
1.18 |
|
|
$ |
0.75 |
|
|
$ |
3.82 |
|
|
$ |
1.45 |
|
Diluted |
$ |
1.16 |
|
|
$ |
0.73 |
|
|
$ |
3.74 |
|
|
$ |
1.43 |
|
Weighted average
common shares outstanding (in thousands): |
|
|
|
|
|
|
|
Basic |
|
46,906 |
|
|
|
48,515 |
|
|
|
47,373 |
|
|
|
48,849 |
|
Diluted |
|
47,755 |
|
|
|
49,402 |
|
|
|
48,348 |
|
|
|
49,651 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(Unaudited - dollars in thousands)
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
Cash flows from
operating activities |
|
|
|
Net income |
$ |
181,351 |
|
|
$ |
71,169 |
|
Adjustments to reconcile net
income to net cash provided by operating activities |
|
|
|
Depreciation |
|
23,075 |
|
|
|
25,239 |
|
Amortization of intangibles |
|
9,610 |
|
|
|
12,026 |
|
Net loss (gain) on sale of property, plant and equipment |
|
149 |
|
|
|
(635 |
) |
Deferred income taxes |
|
9,924 |
|
|
|
(178 |
) |
Stock-based compensation |
|
8,812 |
|
|
|
7,367 |
|
Impairment |
|
— |
|
|
|
1,339 |
|
Non-cash interest expense |
|
710 |
|
|
|
644 |
|
Accounts receivable |
|
44,396 |
|
|
|
(71,575 |
) |
Inventories |
|
(100,422 |
) |
|
|
(72,080 |
) |
Prepaid expenses and other |
|
(11,820 |
) |
|
|
(716 |
) |
Accounts payable and accrued liabilities |
|
39,277 |
|
|
|
101,101 |
|
Other, net |
|
(464 |
) |
|
|
(1,545 |
) |
Net cash provided by operating activities |
|
204,598 |
|
|
|
72,156 |
|
Cash flows from
investing activities |
|
|
|
Cash payments for capital expenditures |
|
(85,071 |
) |
|
|
(42,304 |
) |
Expenditures for revenue generating assets |
|
(3,961 |
) |
|
|
— |
|
Proceeds from the sale of assets |
|
— |
|
|
|
1,445 |
|
Net cash used in investing activities |
|
(89,032 |
) |
|
|
(40,859 |
) |
Cash flows from
financing activities |
|
|
|
Proceeds from exercise of stock options |
|
155 |
|
|
|
1,241 |
|
Dividends paid |
|
(12,157 |
) |
|
|
(12,176 |
) |
Borrowings under revolving credit facilities |
|
103,992 |
|
|
|
72,244 |
|
Payments under revolving credit facilities |
|
(103,992 |
) |
|
|
(57,279 |
) |
Principal payments under finance lease obligations |
|
— |
|
|
|
(59 |
) |
Debt issuance costs paid |
|
(110 |
) |
|
|
(1,023 |
) |
Stock repurchases |
|
(55,899 |
) |
|
|
(24,545 |
) |
Distribution to noncontrolling interest |
|
(512 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(68,523 |
) |
|
|
(21,597 |
) |
Cash and cash
equivalents: |
|
|
|
Net increase in cash, cash equivalents, and restricted cash |
|
47,043 |
|
|
|
9,700 |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
|
58,245 |
|
|
|
71,778 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
105,288 |
|
|
$ |
81,478 |
|
|
WABASH NATIONAL
CORPORATIONSEGMENTS AND RELATED
INFORMATION(Unaudited - dollars in thousands)
|
|
Wabash National Corporation |
|
|
|
|
Three Months Ended September 30, |
|
2023 |
|
2022 |
|
|
|
|
Units Shipped |
|
|
|
|
|
|
|
|
New trailers |
|
|
10,765 |
|
|
13,365 |
|
|
|
|
New truck bodies |
|
|
4,160 |
|
|
4,115 |
|
|
|
|
Used trailers |
|
|
25 |
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Transportation Solutions |
|
Parts & Services |
|
Corporate andEliminations |
|
Consolidated |
2023 |
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
477,802 |
|
$ |
— |
|
$ |
(2,216 |
) |
|
$ |
475,586 |
Used Trailers |
|
|
— |
|
|
1,340 |
|
|
— |
|
|
|
1,340 |
Components, parts and service |
|
|
— |
|
|
38,091 |
|
|
— |
|
|
|
38,091 |
Equipment and other |
|
|
105,068 |
|
|
17,010 |
|
|
(4,267 |
) |
|
|
117,811 |
Total net external sales |
|
$ |
582,870 |
|
$ |
56,441 |
|
$ |
(6,483 |
) |
|
$ |
632,828 |
Gross profit |
|
$ |
107,549 |
|
$ |
15,361 |
|
$ |
— |
|
|
$ |
122,910 |
Income (loss) from operations |
|
$ |
89,413 |
|
$ |
12,358 |
|
$ |
(24,134 |
) |
|
$ |
77,637 |
Adjusted income (loss) from operations1 |
|
$ |
89,413 |
|
$ |
12,358 |
|
$ |
(24,134 |
) |
|
$ |
77,637 |
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
529,659 |
|
$ |
1,150 |
|
$ |
(301 |
) |
|
$ |
530,508 |
Used Trailers |
|
|
— |
|
|
693 |
|
|
— |
|
|
|
693 |
Components, parts and service |
|
|
— |
|
|
34,171 |
|
|
— |
|
|
|
34,171 |
Equipment and other |
|
|
82,120 |
|
|
10,714 |
|
|
(3,056 |
) |
|
|
89,778 |
Total net external sales |
|
$ |
611,779 |
|
$ |
46,728 |
|
$ |
(3,357 |
) |
|
$ |
655,150 |
Gross profit |
|
$ |
80,779 |
|
$ |
11,226 |
|
$ |
— |
|
|
$ |
92,005 |
Income (loss) from operations |
|
$ |
63,274 |
|
$ |
7,732 |
|
$ |
(18,131 |
) |
|
$ |
52,875 |
Adjusted income (loss) from operations1 |
|
$ |
63,274 |
|
$ |
7,732 |
|
$ |
(18,131 |
) |
|
$ |
52,875 |
1 Adjusted operating income (loss), a non-GAAP
financial measure, excludes certain costs, expenses, other charges,
gains or income that are included in the determination of operating
income (loss) under U.S. GAAP, but that management would not
consider important in evaluating the quality of the Company’s
operating results as they are not indicative of the Company’s core
operating results or may obscure trends useful in evaluating the
Company’s continuing activities. Accordingly, the Company presents
adjusted operating income (loss) excluding these special items to
help investors evaluate our operating performance and trends in our
business consistent with how management evaluates such performance
and trends. Further, the Company presents adjusted operating income
(loss) to provide investors with a better understanding of the
Company’s view of our results as compared to prior periods.
WABASH NATIONAL
CORPORATIONSEGMENTS AND RELATED
INFORMATION(Unaudited - dollars in thousands)
|
|
Wabash National Corporation |
|
|
|
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
|
|
|
Units Shipped |
|
|
|
|
|
|
|
|
New trailers |
|
|
34,375 |
|
|
38,900 |
|
|
|
|
New truck bodies |
|
|
11,995 |
|
|
11,550 |
|
|
|
|
Used trailers |
|
|
55 |
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
Transportation Solutions |
|
Parts & Services |
|
Corporate andEliminations |
|
Consolidated |
2023 |
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
1,486,587 |
|
$ |
— |
|
$ |
(4,580 |
) |
|
$ |
1,482,007 |
Used Trailers |
|
|
— |
|
|
2,396 |
|
|
— |
|
|
|
2,396 |
Components, parts and service |
|
|
— |
|
|
113,567 |
|
|
— |
|
|
|
113,567 |
Equipment and other |
|
|
305,036 |
|
|
49,684 |
|
|
(12,290 |
) |
|
|
342,430 |
Total net external sales |
|
$ |
1,791,623 |
|
$ |
165,647 |
|
$ |
(16,870 |
) |
|
$ |
1,940,400 |
Gross profit |
|
$ |
345,098 |
|
$ |
44,866 |
|
$ |
— |
|
|
$ |
389,964 |
Income (loss) from operations |
|
$ |
292,335 |
|
$ |
34,504 |
|
$ |
(75,992 |
) |
|
$ |
250,847 |
Adjusted income (loss) from operations1 |
|
$ |
292,335 |
|
$ |
34,504 |
|
$ |
(75,992 |
) |
|
$ |
250,847 |
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
1,476,052 |
|
$ |
1,392 |
|
$ |
(973 |
) |
|
$ |
1,476,471 |
Used Trailers |
|
|
— |
|
|
2,382 |
|
|
— |
|
|
|
2,382 |
Components, parts and service |
|
|
— |
|
|
105,208 |
|
|
— |
|
|
|
105,208 |
Equipment and other |
|
|
233,774 |
|
|
34,849 |
|
|
(8,004 |
) |
|
|
260,619 |
Total net external sales |
|
$ |
1,709,826 |
|
$ |
143,831 |
|
$ |
(8,977 |
) |
|
$ |
1,844,680 |
Gross profit |
|
$ |
194,516 |
|
$ |
33,578 |
|
$ |
— |
|
|
$ |
228,094 |
Income (loss) from operations |
|
$ |
142,944 |
|
$ |
22,659 |
|
$ |
(56,685 |
) |
|
$ |
108,918 |
Adjusted income (loss) from operations1 |
|
$ |
142,944 |
|
$ |
22,659 |
|
$ |
(56,685 |
) |
|
$ |
108,918 |
1 Adjusted operating income (loss), a non-GAAP
financial measure, excludes certain costs, expenses, other charges,
gains or income that are included in the determination of operating
income (loss) under U.S. GAAP, but that management would not
consider important in evaluating the quality of the Company’s
operating results as they are not indicative of the Company’s core
operating results or may obscure trends useful in evaluating the
Company’s continuing activities. Accordingly, the Company presents
adjusted operating income (loss) excluding these special items to
help investors evaluate our operating performance and trends in our
business consistent with how management evaluates such performance
and trends. Further, the Company presents adjusted operating income
(loss) to provide investors with a better understanding of the
Company’s view of our results as compared to prior periods.
WABASH NATIONAL
CORPORATIONSEGMENT AND COMPANY FINANCIAL
INFORMATION(Unaudited - dollars in thousands)
Adjusted Operating
Income1 |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Transportation
Solutions |
|
|
|
|
|
|
|
Income from operations |
$ |
89,413 |
|
|
$ |
63,274 |
|
|
$ |
292,335 |
|
|
$ |
142,944 |
|
Adjustments: |
|
|
|
|
|
|
|
N/A |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income |
|
89,413 |
|
|
|
63,274 |
|
|
|
292,335 |
|
|
|
142,944 |
|
|
|
|
|
|
|
|
|
Parts &
Services |
|
|
|
|
|
|
|
Income from operations |
|
12,358 |
|
|
|
7,732 |
|
|
|
34,504 |
|
|
|
22,659 |
|
Adjustments: |
|
|
|
|
|
|
|
N/A |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income |
|
12,358 |
|
|
|
7,732 |
|
|
|
34,504 |
|
|
|
22,659 |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
Loss from operations |
|
(24,134 |
) |
|
|
(18,131 |
) |
|
|
(75,992 |
) |
|
|
(56,685 |
) |
Adjustments: |
|
|
|
|
|
|
|
N/A |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted operating loss |
|
(24,134 |
) |
|
|
(18,131 |
) |
|
|
(75,992 |
) |
|
|
(56,685 |
) |
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Income from operations |
|
77,637 |
|
|
|
52,875 |
|
|
|
250,847 |
|
|
|
108,918 |
|
Adjustments: |
|
|
|
|
|
|
|
N/A |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income |
$ |
77,637 |
|
|
$ |
52,875 |
|
|
$ |
250,847 |
|
|
$ |
108,918 |
|
1 Adjusted operating income (loss), a non-GAAP
financial measure, excludes certain costs, expenses, other charges,
gains or income that are included in the determination of operating
income (loss) under U.S. GAAP, but that management would not
consider important in evaluating the quality of the Company’s
operating results as they are not indicative of the Company’s core
operating results or may obscure trends useful in evaluating the
Company’s continuing activities. Accordingly, the Company presents
adjusted operating income (loss) excluding these special items to
help investors evaluate our operating performance and trends in our
business consistent with how management evaluates such performance
and trends. Further, the Company presents adjusted operating income
(loss) to provide investors with a better understanding of the
Company’s view of our results as compared to prior periods.
WABASH NATIONAL
CORPORATIONRECONCILIATION OF GAAP FINANCIAL
MEASURES TONON-GAAP FINANCIAL
MEASURES(Unaudited - dollars in thousands, except per
share amounts)
Operating
EBITDA1: |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$ |
55,481 |
|
|
$ |
36,356 |
|
$ |
181,351 |
|
|
$ |
71,169 |
Income tax expense |
|
18,068 |
|
|
|
11,130 |
|
|
56,289 |
|
|
|
21,831 |
Interest expense |
|
4,932 |
|
|
|
5,210 |
|
|
14,913 |
|
|
|
15,341 |
Depreciation and
amortization |
|
12,519 |
|
|
|
11,941 |
|
|
32,685 |
|
|
|
37,265 |
Stock-based compensation |
|
3,131 |
|
|
|
2,720 |
|
|
8,812 |
|
|
|
7,367 |
Impairment and other, net |
|
147 |
|
|
|
349 |
|
|
149 |
|
|
|
692 |
Other, net |
|
(844 |
) |
|
|
179 |
|
|
(1,706 |
) |
|
|
577 |
Operating EBITDA |
$ |
93,434 |
|
|
$ |
67,885 |
|
$ |
292,493 |
|
|
$ |
154,242 |
Adjusted Net Income
Attributable to Common
Stockholders2: |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income attributable to common stockholders |
$ |
55,329 |
|
$ |
36,170 |
|
$ |
180,870 |
|
$ |
70,796 |
Adjustments: |
|
|
|
|
|
|
|
N/A |
|
— |
|
|
— |
|
|
— |
|
|
— |
Adjusted net income
attributable to common stockholders |
$ |
55,329 |
|
$ |
36,170 |
|
$ |
180,870 |
|
$ |
70,796 |
Adjusted Diluted
Earnings Per
Share2: |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Diluted earnings per share |
$ |
1.16 |
|
$ |
0.73 |
|
$ |
3.74 |
|
$ |
1.43 |
Adjustments: |
|
|
|
|
|
|
|
N/A |
|
— |
|
|
— |
|
|
— |
|
|
— |
Adjusted diluted earnings per
share |
$ |
1.16 |
|
$ |
0.73 |
|
$ |
3.74 |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding (in thousands) |
|
47,755 |
|
|
49,402 |
|
|
48,348 |
|
|
49,651 |
1 Operating EBITDA includes
noncontrolling interest and is defined as earnings before interest,
taxes, depreciation, amortization, stock-based compensation,
impairment and other, net, and other non-operating income and
expense (including any loss on debt extinguishment charges).
Management believes providing operating EBITDA is useful for
investors to understand the Company’s performance and results of
operations period to period with the exclusion of the items
identified above. Management believes the presentation of operating
EBITDA, when combined with the GAAP presentations of operating
income and net income, is beneficial to an investor’s understanding
of the Company’s operating performance.
2 Adjusted net income
attributable to common stockholders and adjusted diluted earnings
per share reflect no adjustments for any period presented.
WABASH NATIONAL
CORPORATIONRECONCILIATION OF FREE CASH
FLOW1(Unaudited - dollars in
thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
|
2022 |
|
2023 |
|
2022 |
Net cash provided by (used in) operating activities |
$ |
58,267 |
|
|
$ |
(10,518 |
) |
|
$ |
204,598 |
|
|
$ |
72,156 |
|
Cash payments for capital
expenditures |
|
(29,251 |
) |
|
|
(19,935 |
) |
|
|
(85,071 |
) |
|
|
(42,304 |
) |
Expenditures for revenue
generating assets |
|
(717 |
) |
|
|
— |
|
|
|
(3,961 |
) |
|
|
— |
|
Free cash flow1 |
$ |
28,299 |
|
|
$ |
(30,453 |
) |
|
$ |
115,566 |
|
|
$ |
29,852 |
|
1 Free cash flow is defined as
net cash provided by (used in) operating activities minus cash
payments for capital expenditures minus expenditures for revenue
generating assets. Management believes providing free cash flow is
useful for investors to understand the Company’s performance and
results of cash generation period to period with the exclusion of
the item identified above. Management believes the presentation of
free cash flow, when combined with the GAAP presentations of cash
used in operating activities, is beneficial to an investor’s
understanding of the Company’s operating performance.
WABASH NATIONAL
CORPORATIONRECONCILIATION OF ADJUSTED SEGMENT
EBITDA1AND ADJUSTED SEGMENT
EBITDA MARGIN1(Unaudited - dollars in
thousands)
|
Transportation Solutions |
|
Parts & Services |
Three Months Ended September 30, |
2023 |
|
2022 |
|
2023 |
|
2022 |
Income from operations |
$ |
89,413 |
|
|
$ |
63,274 |
|
|
$ |
12,358 |
|
|
$ |
7,732 |
|
Depreciation and
amortization |
|
11,298 |
|
|
|
10,491 |
|
|
|
554 |
|
|
|
559 |
|
Impairment and other, net |
|
147 |
|
|
|
258 |
|
|
|
— |
|
|
|
15 |
|
Adjusted segment EBITDA |
$ |
100,858 |
|
|
$ |
74,023 |
|
|
$ |
12,912 |
|
|
$ |
8,306 |
|
|
|
|
|
|
|
|
|
Adjusted segment EBITDA
margin |
|
17.3 |
% |
|
|
12.1 |
% |
|
|
22.9 |
% |
|
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
Transportation Solutions |
|
Parts & Services |
Nine Months Ended September 30, |
2023 |
|
2022 |
|
2023 |
|
2022 |
Income from operations |
$ |
292,335 |
|
|
$ |
142,944 |
|
|
$ |
34,504 |
|
|
$ |
22,659 |
|
Depreciation and
amortization |
|
29,305 |
|
|
|
32,729 |
|
|
|
1,603 |
|
|
|
2,237 |
|
Impairment and other, net |
|
149 |
|
|
|
(360 |
) |
|
|
— |
|
|
|
5 |
|
Adjusted segment EBITDA |
$ |
321,789 |
|
|
$ |
175,313 |
|
|
$ |
36,107 |
|
|
$ |
24,901 |
|
|
|
|
|
|
|
|
|
Adjusted segment EBITDA
margin |
|
18.0 |
% |
|
|
10.3 |
% |
|
|
21.8 |
% |
|
|
17.3 |
% |
1 Adjusted segment EBITDA, a
non-GAAP financial measure, includes noncontrolling interest and is
calculated by adding back segment depreciation and amortization
expense to segment operating income, and excludes certain costs,
expenses, other charges, gains or income that are included in the
determination of operating income under GAAP, but that management
would not consider important in evaluating the quality of the
Company’s segment operating results as they are not indicative of
each segment's core operating results or may obscure trends useful
in evaluating the segment's continuing activities. Adjusted segment
EBITDA margin is calculated by dividing Adjusted segment EBITDA by
segment total net sales.
Media Contact:Dana
StelselDirector, Communications(765)
771-5766dana.stelsel@onewabash.com
Investor Relations:Ryan ReedSr Director,
Corporate Development & Investor Relations(765)
490-5664ryan.reed@onewabash.com
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